The US Annual Deficit is Dropping Rapidly

Contrary to Public Perception, The 2013 USA Deficit is Reducing Dramatically

chart-of-the-day-barack-obama-is-totally-torpedoing-deficit-levels

Today we borrow a post from Business Insider – their Chart of the Day shows the US deficit is now down to 4% of GDP.   For all those that think the current impasse between the Republicans and the Democrats is a fight over outrageous spending, it seems that everyone gathers that the spending must be reduced, and being  reduced it is.  

The Chart is most dramatic and tells a very important story.  The US economy is mending and the start of the next boom is stirring.

CHART OF THE DAY: Barack Obama Is Totally Torpedoing Deficit Level

Any debate about debts and deficits becomes much more robust when the numbers are considered relative to the size of the economy. 

“Under Obama, the deficit is falling from 10% of GDP to just 3%,” tweeted MSNBC’s Ari Melber. “But only 6% of America knows it.There’s often a misconception that a democratic President would be more likely to raise these ratios by promoting big government.But the reality is quite the opposite.As you can see from this chart from Deutsche Bank’s David Bianco, Obama has been one of the most effective presidents in American history to reduce deficit levels.

 

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The Strength of the US Economy

There is much confusion over the strength of the US economy. Followers of politics believe the US is being decimated by the ‘socialist’ policies of the current administration. Other believe the US has exported its manufacturing ability and jobs overseas, never to be recovered. Others may have read ‘The Unwinding’  by George Packer, which is a dismal tale of people struggling with economic loss and disillusionment of the US political system. It is a series of discussions all founded on bits of truths, while ignoring the largest most important fact.

As we have seen through the decades, through its ups and downs, through the never ending cycles of boom and bust somehow that weird system of checks and balances that comprises the US system of government and of economics, always rises to the surface.

It is a bit of a difficult system, in that those less fortunate are often left behind. Those beaten down often never recover. Those wo are not part of the Wall St elite, often don’t have a decent chance.

But overall, the economic powerhouse that is the USA continues to chug along –  through thick and then through half – truths, and mis-truths, through the lies and deceit, still that system and that economy powers the modern world.

Investing

As with every cycle, one must invest at the start of the cycle, never at the eight of the madness. Pick stocks that are for the future, and know those stocks will rise in the future.

 

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Views expressed are opinions and not investment advice. You should retain a licensed professional to guide you and  not rely on the opinions expressed herein. This report is neither a solicitation nor a recommendation to buy or sell securities. We are not a registered investment advisor nor a broker-dealer. The information contained herein is based on sources which we believe reliable but is not guaranteed as being accurate or a complete statement or summary of the available data.

By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.

1 comment

  1. This statement from this article: “Obama has been one of the most effective presidents in American history to reduce deficit levels.” is the biggest lie ever made. Obama is absolutely the LEAST effective [fraudulent] president in American history to reduce deficit levels. He is a spend-a-holic and thinks USA wealth is his to redistribute and dispose of all by himself. If anyone believes “Obama has been one of the most effective presidents in American history to reduce deficit levels.” it’ll prove that the bigger the lie the more it will be believed.

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